A group of state senators representing New York City districts wants the state to hold off on Gov. Kathy Hochul’s Penn Station area redevelopment until the project’s finances can be analyzed by the city’s Independent Budget Office, The Post has learned.
The senators — who together represent the majority of the city’s delegation — want to halt the project to fund station renovations using taxes on 10 new office towers because of a lack of clarity about their details, they said in a letter Wednesday to the board of the Empire State Development Corporation.
“Vital information about the proposed Penn Station deal has still not been provided to taxpayers and the lawmakers elected to ensure their dollars are spent wisely and their city is developed smartly,” the group wrote.
“What happens if the expected rents don’t materialize? Will taxpayers still be on the hook?”
The math of paying for the project must be made public before the state moves forward, the senators said — including whether developer Vornado Realty Trust will receive tax subsidies as part of the plan and how much tax revenue the city stands to lose because of the state’s plan to use taxes on the new buildings to fund the train station rehab.
“We strongly urge Empire State Development (ESD) to halt this plan until there are explanations provided and agreements made associated with the cost, design, scope, bond liabilities, and other aspects of the project that remain unknown,” the letter said. “Far too many questions remain for the board to make an informed decision.”
Hochul inherited the effort from Cuomo. In November, she said the state had reduced the size of the towers by 7 percent — but did not walk back Cuomo’s plan to side-step the city’s zoning process to seize and destroy privately owned buildings.
“We don’t know what the Penn Station part of the project will cost. The numbers seem to move around,” said State Sen. Liz Krueger, the letter’s lead signatory. “You could be talking billions and billions of dollars here.”
Good government groups recently called the project a “secretive maneuver” to redirect an estimated $5 billion away from the city and into state coffers. City officials have been told the city will be “made whole for current taxes,” according to Empire State Development.
Neighborhood activists are also upset that the plan will circumvent the city’s typical zoning process known as ULURP — a point echoed by the senators.
“There’s not enough transparency for the Penn project,” said State Sen. Leroy Comrie (D-Queens), who signed the letter and chairs the committee that oversees ESD. “This project can’t be done without more community input.”
Vornado, which will build and manage new buildings, is owned by Steven Roth, a top political donor to candidates including Donald Trump and Hochul herself.
A rep for ESD said the agency had received the senators’ letter, and that ESD would not vote on the project until the state and city agree to a tax framework.
“Let’s be clear: fixing Penn Station and improving the surrounding neighborhood cannot wait,” the rep, Kirstin Devoe, said in a statement. “We appreciate the Senators’ letter and are committed to continuing productive conversations with all stakeholders as we further revise and develop the plan. Together, we can adopt a fair framework that delivers the public benefits that New Yorkers have been denied for far too long.”
